ScanSource (NASDAQ:SCSC) Upgraded to "Strong-Buy" at Wall Street Zen

Key Points

• ScanSource has been upgraded to a "Strong Buy" rating by Wall Street Zen and Zacks Research, reflecting positive sentiment among analysts regarding the stock's potential.
• The company's latest earnings report showed an EPS of $1.02, beating expectations and indicating a year-over-year revenue increase of 8.9%.
• Insider trading activity includes significant sales from both the CEO and an executive vice president, highlighting potential changes in confidence among company officials.

Wall Street Zen upgraded shares of ScanSource (NASDAQ:SCSC - Free Report) from a buy rating to a strong-buy rating in a research note released on Saturday morning.

Separately, Zacks Research upgraded ScanSource from a "hold" rating to a "strong-buy" rating in a report on Monday, August 25th. One equities research analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Strong Buy" and a consensus target price of $42.00.

ScanSource Price Performance

Shares of ScanSource stock traded down $0.53 during trading on Friday, hitting $43.80. 550,527 shares of the stock traded hands, compared to its average volume of 282,332. The firm's fifty day moving average is $42.40 and its 200-day moving average is $39.15. The company has a quick ratio of 1.30, a current ratio of 2.01 and a debt-to-equity ratio of 0.14. ScanSource has a 52 week low of $28.75 and a 52 week high of $53.90. The stock has a market cap of $958.78 million, a price-to-earnings ratio of 14.55, a PEG ratio of 0.74 and a beta of 1.43.

ScanSource (NASDAQ:SCSC - Get Free Report) last posted its quarterly earnings results on Thursday, August 21st. The industrial products company reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.91 by $0.11. ScanSource had a return on equity of 9.38% and a net margin of 2.35%.The business had revenue of $812.89 million for the quarter, compared to analyst estimates of $776.21 million. During the same period last year, the company earned $0.80 EPS. ScanSource's revenue for the quarter was up 8.9% compared to the same quarter last year. ScanSource has set its FY 2026 guidance at EPS. Research analysts expect that ScanSource will post 3.33 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Rachel Hayden sold 1,080 shares of ScanSource stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $44.69, for a total value of $48,265.20. Following the completion of the sale, the executive vice president owned 11,688 shares of the company's stock, valued at $522,336.72. The trade was a 8.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Michael L. Baur sold 102,031 shares of the business's stock in a transaction dated Wednesday, September 17th. The shares were sold at an average price of $44.96, for a total value of $4,587,313.76. Following the sale, the chief executive officer directly owned 227,512 shares of the company's stock, valued at $10,228,939.52. This represents a 30.96% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 153,677 shares of company stock valued at $6,876,030 in the last quarter. 4.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On ScanSource

Hedge funds have recently made changes to their positions in the business. Canada Pension Plan Investment Board bought a new position in shares of ScanSource in the second quarter worth about $25,000. Versant Capital Management Inc boosted its stake in shares of ScanSource by 88.4% in the first quarter. Versant Capital Management Inc now owns 863 shares of the industrial products company's stock worth $29,000 after acquiring an additional 405 shares during the period. Point72 Asset Management L.P. purchased a new stake in shares of ScanSource in the fourth quarter worth about $81,000. GAMMA Investing LLC lifted its position in shares of ScanSource by 25.5% in the first quarter. GAMMA Investing LLC now owns 1,944 shares of the industrial products company's stock worth $66,000 after buying an additional 395 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its position in shares of ScanSource by 400.5% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company's stock worth $87,000 after buying an additional 1,670 shares in the last quarter. Institutional investors own 97.91% of the company's stock.

About ScanSource

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.